A Quiet Deal ?

Published on: 28th January 2019

In recent months, many of our clients have received an increasing number of direct approaches from operators either in person, by phone or by post and e-mail expressing an interest in acquiring their parks. Indeed, we are aware that in some instances operators are employing call centres to make an initial approach though that may not be particularly obvious.

Why is this happening? The simple explanation is that we are experiencing buoyant demand for parks with only a very limited supply of parks coming to the market. We are also seeing a much greater degree of market segmentation and agglomeration occurring which can lead to the value of the whole being greater than the sum of the parts.

The dynamics of the market are constantly shifting, often as a result of new sources of funding becoming available with innovative financing and legal structures being put in place. The underlying strength and the variety of income streams available from parks has become increasingly recognised and whilst park businesses are truly distinguished from one another by their management, location, scale and facilities, they also represent an asset class which at their core, provide a return on investment. Whilst parks are not traded as financial instruments, the way in which parks are financed is becoming increasingly diverse and has a considerable impact on marketability and value. Maintaining a close watch on this aspect of the market together with up-to date knowledge of market conditions generally and of the range of buyers who have the strongest appetite for parks are all key components in understanding the value of parks.

Naturally, in a competitive environment where supply is constrained, imperfect information provides opportunities that can sometimes be exploited. Equally, the desire to do a ‘quiet deal’ is often at the forefront of the minds of park operators who are considering disposing of their park; the benefit in terms of ensuring that staff and customer loyalty is not compromised is usually a powerful motive.

Frequently, the best way to ensure that the best possible price is realised is to expose a park to the market fully though on occasion there can be ‘special purchasers’ such as immediately adjacent similar businesses who will always outbid the market. However, there can also be instances where more discreet marketing can extract an element of premium value that is not available in the market generally as a result of perceived exclusivity and discretion. Likewise, a desire by vendors to maintain complete confidentiality may prompt a requirement to deal with any sale in confidence.

At Sanderson Weatherall, we provide confidential and discrete advice on sales without charge or obligation ‘in the round’ however, factors such as those identified frequently dictate that we undertake park sales on a confidential basis.

The key to extracting maximum value whilst also successfully concluding a ‘quiet deal’ is to have a comprehensive and up to date knowledge of the market and to ensure that competing interest is engendered. This is still possible within the confines of a confidential marketing exercise and in our experience, despite suggestions otherwise, there is seldom only ‘one game in town’.

To discuss the possibility of a confidential sale of your park and how this would be undertaken or to register your requirements, please get in touch.

Holiday & Caravan Park 2019 Market Report

The UK economy has endured a further year of uncertainty largely centred around the ongoing Brexit negotiations.
Click here to view the full report.
A record breaking 2018 will be remembered as a year of two halves, certainly in terms of the weather – The ‘Beast from the East’ gave us a slow start keeping many holiday makers at home for much of the spring. It also proved a difficult period for caravan sales, reported by many operators to be weaker than anticipated. What a difference a couple of months can make – A record breaking summer, hotter than 1976, the year Edwards and Partners were established, helped to recover lost ground and has resulted in 2018 being another excellent year for the caravan park sector.

A record breaking 2018 will be remembered as a year of two halves, certainly in terms of the weather – The ‘Beast from the East’ gave us a slow start keeping many holiday makers at home for much of the spring. It also proved a difficult period for caravan sales, reported by many operators to be weaker than anticipated. What a difference a couple of months can make – A record breaking summer, hotter than 1976, the year Edwards and Partners were established, helped to recover lost ground and has resulted in 2018 being another excellent year for the caravan park sector.

[fulltext] =>

The Market Report includes a general economic background, market review, analysis of pitch values, along with industry news, a summary of the parks sold during 2018 and a selection of the parks we currently have on the market.

Smugglers end caravan park sold above asking price

Our holiday and caravan park specialists based in the South have recently sold Smugglers End Caravan Park, a small park located adjacent to Winchelsea Beach, a seaside village in East Sussex.
Smugglers End Caravan Park had been family owned for just over thirty years. The park consisted of nine holiday caravans and one mobile warden’s home, offering purchasers with significant redevelopment potential thanks to the site area.

Our holiday and caravan park specialists based in the South have recently sold Smugglers End Caravan Park, a small park located adjacent to Winchelsea Beach, a seaside village in East Sussex.

Smugglers End Caravan Park had been family owned for just over thirty years. The park consisted of nine holiday caravans and one mobile warden’s home, offering purchasers with significant redevelopment potential thanks to the site area.

[fulltext] =>

Lee Southan, agent on the park commented, “Winchelsea Beach is a desirable holiday destination that appeals to many as it’s often quieter than many of the more developed resorts along the surrounding stretches of the coast.

“We received significant interest in the sale of Smugglers End Caravan Park and were delighted to achieve a sale price of £450,000, £50,000 above the original asking price. The coastline on the South remains one of the most sought after holiday destinations and with the market remaining buoyant, parks don’t tend to stay on the market for very long!”

Substantial residential park sold for over £3,500,000 in Swansea

We are delighted to have completed the sale of Woodland Park, a large residential caravan park with significant development potential.
The park is located in the village of Waunarlwydd which is located approximately 3 miles north west of Swansea and at the head of the Gower peninsula on the coast of South Wales.

We are delighted to have completed the sale of Woodland Park, a large residential caravan park with significant development potential.

The park is located in the village of Waunarlwydd which is located approximately 3 miles north west of Swansea and at the head of the Gower peninsula on the coast of South Wales.

[fulltext] =>

With 11.5 acres of land in total, there is currently 8.2 acres of developed land with 114 park homes on site and a further 3.3 acres of land that offers development potential, subject to the relevant consents.

Andrew Bagnell, agent on the park and holiday and caravan park specialist in our Devon office commented, “Woodland Park generated substantial interest amongst park operators, it is an immaculately presented park which produces just under £200,000 per year. On top of the established side to the business there is also excellent development potential and we look forward to seeing what the purchasers, Wyldecrest, do with the site.”

We’ve recently published our annual market report which features a general economic background, market review, analysis of pitch values, industry news and a summary of parks sold and parks currently for sale – click here to view the full report.